Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (11) TMI 940 - AT - Service TaxCENVAT credit - rental services - eligible input services - Held that: - I find that the appellant has availed the credit of service tax paid under “Renting of immovable property service”, being rent paid for the premises at Tamil Nadu Warehousing Corporation for undertaking the manufacturing processes and the resulted goods were returned to the appellant’s factory and cleared on payment of duty. It is also not disputed that the service provider has discharged service tax liability on renting of immovable property. Both unit-1 and unit-2 share some legal entity and the intermediate products are received back by unit-1 for the manufacture of final products. Therefore, renting of immovable property is having direct nexus in the manufacture of final products at unit-1. Rule 2(l) of CCR, 2004 clearly mentions that the service utilised in or in relation to the manufacture of final products is eligible as an input service. Hence, the benefit of Cenvat credit on input service cannot be denied to the appellant - appeal allowed.
|